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Business Reporter
GOLD production at Freda Rebecca fell 11,2 percent to 32 252 ounces in six months to September this year, its parent company Mwana Africa plc said yesterday. The decrease in gold produced during the period under review was attributable to disruptions due to the leach tank incident, lower grade and lower recoveries, which were partially offset by an increase in milled tonnage.
Profits fell for the six-month period relative to the same period in the previous financial year, attributable to lower head grade and recoveries and a lower gold price.
Recoveries suffered due to the leach tank incident, falling to 81 percent for the six months to September compared to 82 percent during the comparable period last year.
However, recoveries began to improve towards the end of the period with the quarter to September 2013, showing recoveries of 84 percent versus 78 percent in the quarter to June 2013. Average monthly production for the period was 5 375 ounces of gold.
The average gold price achieved by Freda Rebecca for the six months to 2012 was US$1 642 per ounce compared to US$1 352 per ounce for this six month to September 2013.
At Bindura Nickel Corporation, the six-month period to September was characterised by efforts to ramp up production and the shift to the new mine plan, with record production in both August and September. BNC sold 2 191 tonnes of concentrate and achieved revenue of US$21,4 million, Mwana Africa said. During the period, BNC implemented a new mine plan targeting the higher grade zones of the ore body, known as “massives”. This has seen mining cost dropping from US$19 251 per tonnes in the June 2013 quarter to US$9 689 per tonne in the September 2013 quarter.
Nickel prices fell with BNC achieving an average nickel price of US$14 268 per tonne for the six months to September 2013, compared to US$18 000 per tonne in January 2013.
Commenting on the operations of the two companies, Mwana Africa chief executive Mr Kalaa Mpinga said: “The fall in gold and nickel prices earlier in the year resulted in a difficult period for Mwana.”
“We reacted swiftly to the challenge, commencing a corporate cost cutting exercise and raising approximately US$6 million to resolve the immediate working capital shortfall. Mwana is now stable and we are focused on delivering value from all of our projects.
“Despite the difficulties brought on by lower commodity prices, the company has achieved considerable progress on all of its main projects. Significantly, in Freda Rebecca and Trojan, we now have two mines in production, and our resource base in gold and nickel, together with the copper potential under our Joint Venture with Hailiang underpins a promising future for Mwana.”
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